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House of Assembly - Fifty-First Parliament, Third Session (51-3)
2009-06-04 Daily Xml
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APPROPRIATION BILL

Introduction and First Reading

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (15:09): Obtained leave and introduced a bill for an act for the appropriation of money from the Consolidated Account for the year ending 30 June 2010, and for other purposes. Read a first time.

Second Reading

The Hon. K.O. FOLEY (Port Adelaide—Deputy Premier, Treasurer, Minister for Industry and Trade, Minister for Federal/State Relations) (15:10): I move:

That this bill be now read a second time.

Prior to the commencement of my speech, I advise the house that hopefully I will be in a position to make a very important ministerial statement immediately at the conclusion of my second reading speech that I would ask all members of the house to be present for.

Mr Speaker, over the past 12 months the global economy has faced unprecedented challenges.

It has been well documented how international economies including the United States, the United Kingdom and Japan, through to nations such as Ireland and Iceland, are wilting in the wake of the economic crisis.

The crisis has claimed international financial institutions and caused many others to be bailed out by central banks and governments at a cost of trillions of dollars.

Economists have described it as a virus—as having a contagion effect, and, as a result nearly every advanced economy in the world has been dragged into recession—albeit, as I noted yesterday, not yet in Australia.

In my recent trip to New York, I was advised that the immediate outlook for the United States was grim, to say the least.

Nominal house prices are down 30 per cent from their peak, with one commentator believing that the market would not bottom out until the middle of next year.

It is estimated that approximately 50 per cent of houses being sold are foreclosure transactions, and one commentator believes the foreclosure rate could grow as high as 40 per cent of all mortgaged homes as the financial crisis moves from the sub-prime mortgage market into the prime mortgage market.

The financial crisis will see not only depressed growth in the United States, but also a major restructure of their banking system, with some estimating that in excess of 1,000 banks will disappear from the landscape of the United States.

The International Monetary Fund issued their World Economy Growth Forecast in July last year, predicting robust growth of 3.9 per cent. Putting that in context, as of July last year we had a $500 million operating surplus, no state budget debt and none other than the pre-eminent financial body the IMF itself was predicting a year of robust economic growth globally.

But, in less than 12 months, in fact, within a matter of a few months, the world economy began to collapse, with the IMF now forecasting the world economy contracting by 1.3 per cent. I think I am right in saying that is the first time in post-war history that the entire global economy as one has indeed contracted.

Mr Speaker, while the outlook in Australia is not quite as grim, we of course are not immune.

Our national economy is suffering a double hit.

The financial crisis means lenders are reluctant to make capital available, and that is restricting growth. At the same time, economic difficulties being experienced by many of our trading partners have caused some of our export markets to dry up.

The Rann Labor Government has an enviable record of delivering budget surpluses and as a result is in a strong position to weather the economic storm.

Just a year ago, the state budget returned a surplus of $464 million and all budget debt had been eradicated—in fact the budget had accrued over $250 million in financial assets.

In addition, we have invested record sums in our key services of health, education, transport, police and the criminal justice system and in securing our water supplies.

The Rann Labor Government has also delivered billions of dollars in tax reforms, making South Australia a better place to do business and providing an economic environment in which more than 100,000 new jobs have been created—two-thirds of them full-time.

However the economic crisis has had a devastating impact on the state's revenue base.

Since the 2008-09 Budget, GST and state revenues have plunged by billions of dollars.

In the 2008-09 Mid-Year Budget Review, I outlined the government's actions to improve the state's fiscal outlook in response to the global financial crisis.

Mr Speaker, the fiscal outlook has continued to deteriorate—pushing the budget back into deficit.

Now the total fall in GST revenue since the 2008-09 Budget is projected to be $2.9 billion over the forward estimates with state revenues plummeting a further $882 million over the same period.

When I first began to frame this budget the government faced the prospect of an operating deficit well in excess of $500 million and significant deficits of similar proportion across the forward estimates, virtually as far as the eye could see. The cabinet—and I take note of the decision of my colleagues, the Premier in particular, in accepting that that was an unsustainable position and that we had to take further corrective action.

I again want to put on the record how pleased I am that we have had such a responsible leader and cabinet when it has come to what is an incredibly difficult set of decisions, but they are the right decisions. As a result of that decision of cabinet, the government has made some very tough decisions, which I will detail later, in order to place this state on a path to surplus.

Net operating deficits will still be recorded this year and next. In 2010-11 and beyond, the Rann Labor Government will return South Australia to surplus once more.

In detail, the net operating results are:

a $265 million expected deficit in this budget year of 2008-09;

a $304 million budget deficit in budget year 2009-10;

through actions of this budget, which I am about to outline, for 2010-11, the budget will be in surplus—a surplus of $78 million;

in 2011-12, the budget will again be in surplus at $96 million;

by 2012-13, the fourth year of the forward estimates, we will be booking a surplus of a $304 million, not only in operating surplus but equally a net lending surplus in that year.

What I have done in the budget is that I have also included a projected fifth year of the forward estimates as Treasurer Wayne Swan has done at a national level, and it shows a surplus of just short of $500 million. This government has set the path to recovery and the path to surplus.

General government net debt is expected to grow to $3.2 billion by 30 June 2012, largely reflecting the government's record infrastructure spending, before beginning to decline by 30 June 2013.

As a percentage of GSP net debt is expected to be 3.4 per cent at 30 June 2013—a mere fraction of what it was in the 1990s and inherited by the then Liberal government.

Mr Speaker, the International Monetary Fund and the Commonwealth Government have sent a clear message.

The best response to this economic crisis is for governments to invest in, and where possible, bring forward job creation investment in key infrastructure.

It is a strategy to stimulate the economy and importantly to secure and sustain jobs in our economy.

This budget does just that.

This budget will continue its commitment to rebuilding critical infrastructure.

In partnership with the Commonwealth, we will bring forward projects such as the upgrade and electrification of the Gawler line—part of a record public transport infrastructure program worth in excess of $2 billion. That project, incidentally, will be brought forward, I am advised, by some two years.

The Adelaide Desalination Plant will be expanded to a 100 gigalitre capacity—enough to produce about half—50 per cent—of South Australia's critical human water needs, with first water flowing from that plant in December 2010.

Mr Speaker, in the next financial year alone, our infrastructure program will support nearly 14,000 full-time equivalent jobs—providing a direct stimulus to the South Australian economy when it is needed most.

Over the next four years this government will deliver an infrastructure program totalling $11.4 billion—continuing to support jobs and the economy.

The government's capital spending will grow from 1.8 per cent of GSP last year, to 3.0 per cent this year, and to 5.0 per cent of GSP next year—a clear demonstration of how this government is investing in stimulating the economy during this difficult period.

However, this expenditure program has to be delivered while keeping our state debt at manageable levels and the budget in a sustainable position. This is no time for fanciful new infrastructure projects such as billion-dollar inner city football stadiums.

Mr Speaker, the 2009-10 Budget is framed in the face of a significant plunge in revenue.

The significant weakening in property market conditions experienced in 2008-09 are anticipated to continue into 2009-10 and will have a major effect on property based revenue.

As a result, revenue from stamp duty on conveyances will decline by more than 20 per cent in 2008-09, costing the state budget more than $180 million.

Even though there have also been significant reductions in interest rates, continued uncertainty and a modest economic outlook will continue to have a dampening influence on the property market and hence state revenues.

Mr Speaker, as I have already explained, the government's receipt of GST grants has declined markedly.

In 2008-09 GST revenue grants to South Australia are expected to be more than $350 million lower than the original budget estimate.

Despite the revenue pressure, the 2009-10 Budget contains no new taxes, consolidating the significant tax relief provided in previous budgets.

Payroll tax reductions, announced in 2008-09, will take effect from 1 July 2009—this year.

The payroll tax rate will be reduced from 1 July this year from 5.0 per cent to 4.95 per cent and the payroll tax threshold will increase from $552,000 to $600,000.

This will be of significant assistance to business and will continue to support jobs in our economy.

It's estimated that 6,700 employers employing about 370,000 South Australians are expected to benefit from these reforms, including an estimated 180 employers who will no longer be liable for payroll tax when the tax-free threshold is increased to $600,000.

From 1 July 2009, South Australia will have the second lowest payroll tax in Australia, equal to that of our major manufacturing competitor, the state of Victoria.

The payroll tax reforms delivered by this government will be worth more than a billion dollars since coming to office by the year 2012-13.

Mr Speaker, while I acknowledge land tax for some taxpayers is clearly a burden, general reform unfortunately cannot be afforded in this current economic climate.

However, from 1 July 2009, this budget will provide land tax relief for land that is used for residential aged care facilities approved under the Commonwealth Aged Care Act.

This measure will ensure that all Commonwealth accredited residential aged care facilities will not be required to pay land tax, regardless of whether they are run as a not-for-profit or a commercial operation.

The estimated cost of this measure is $6.2 million over the four years from 2009-10 to 2012-13, including $1.6 million in 2009-10.

Consistent with the government's revenue reform commitments, remaining mortgage duty and rental duty will be fully abolished from 1 July 2009 and stamp duty on the transfer of non-quoted marketable securities and non-real property transfers will be abolished from 1 July 2012.

This is fully in accordance with the Intergovernmental Agreement on Federal Financial Relations.

Mr Speaker, with government comes responsibility for sound economic management and also for difficult and hard decisions.

As a result, today I am announcing that the New Prisons and Secure Facilities Project will be cancelled.

This has been a difficult decision for government, but one that is necessary to ensure that we can continue to deliver our commitment to deliver critical social and economic infrastructure and key services.

The decision to cancel this project will reduce our future debt obligations by more than $500 million.

Mr Speaker, the government carefully examined the case for the full range of our infrastructure, and, on balance I believe it is right to put schools, hospitals and public transport ahead of building new prisons and secure facilities in this state.

There remains provision in the budget, though, for an additional 232 prison beds within existing facilities over the next three years.

This is in addition to the 374 new beds provided in 2007-08 and 2008-09.

That is, we have provided in recent years a total of some 606 more prison beds to sustain the prison population due to our tough on crime, tough on the causes of crime legislative program.

Mr Speaker, today I am also announcing the government is to establish a Sustainable Budget Commission to be led by the noted economist Mr Geoff Carmody. Mr Carmody was the co-founder of Access Economics, I believe, with Mr Chris Richardson, and was the executive officer of the Howard Commonwealth Government's National Commission of Audit which reported to the Howard-Costello government in June 1996. Mr Carmody is familiar with this type of work and will bring a great deal of experience to the role.

Other members of the Sustainable Budget Commission will be Senior Managing Partner of Ferrier Hodgson and Chair of the Economic Development Board, Mr Bruce Carter; Monsignor David Cappo, Commissioner for Social Inclusion; Professor Jennifer Westacott, Senior Partner at KPMG; Mr Chris Eccles, the Chief Executive Officer of the Department of the Premier and Cabinet; and Mr Jim Wright, the Under Treasurer.

So, within that commission is an independent chair of great standing and experience, trusted by the Howard Liberal government, together with the chairs of our Social Inclusion Board and Economic Development Board, to ensure that social policy and economic policy are brought to the table.

The Commission will be supported by a secretariat from the departments of Treasury and Finance and Premier and Cabinet.

It will be asked to recommend strategies to achieve additional budget improvement measures of $750 million in the forward estimates period, with $150 million to be achieved in 2010-11, $250 million in 2011-12 and $350 million in 2012-13.

This savings task is challenging, but one that the Rann Government has previously confronted.

Similar savings tasks were conducted in 2002, where in excess of $1.5 billion, from memory, was taken from recurrent and operational expenditure, and in 2006 with the Greg Smith review. We have implemented 96 per cent of all savings recommended and further savings measures. We have a track record of delivering our savings agenda.

Cabinet has already tasked the Commission with examining the budget process and putting forward an appropriate date for the 2010-11 Budget taking account of the 2010 election and the Commission's work.

Full terms of reference will be given to the Commission immediately following the March election so that it can begin its detailed work.

To achieve a proportion of this savings task, the government today will make it very clear, and has made it clear, that we will seek outcomes in public sector wage negotiations not exceeding 2.5 per cent in the next round of enterprise bargaining agreements.

South Australia cannot afford a blank cheque for public sector pay deals, particularly in this current environment, and it is time that our pay outcomes reflected what is a reality for workers in the general economy in the private sector.

Forecasts for inflation range from about 1.25 per cent to 2 per cent over the next few years. We are offering the Public Service security of position, tenure and modest wage outcomes, with real growth in those wages, but to be contained at a time when factory workers at General Motors are working three days a week, many workers are working less hours, jobs are being lost, in some cases, as I read from EDS, and finance sector workers being asked for a pay reduction. This is not an unreasonable request to the public sector in our state.

Increases of 2.5 per cent across all public sector wage outcomes will ensure that not only are real wage increases delivered to public servants, the need to cut further jobs and the savings task will be significantly reduced.

Given that many public sector workers enjoy security of tenure, I do not believe, neither does the government, that it is unreasonable for them to restrain their wage demands.

I will talk in detail about the volume of those savings, but if we are able to achieve 2.5 per cent across the public sector, of the $350 million in savings required in years 2012-13, $290 million of that can come from wage restraint. Anything less than that will be made up in further public sector efficiencies. The government is realistic, it knows that that is a hard task, but the challenge, in a sense, is there for the public sector.

Mr Speaker, the Commonwealth announced the Nation Building—Economic Stimulus Plan for recovery in February to address the impact of the global financial crisis on Australia.

The Rann Labor Government fully supports this program.

It will provide an immediate employment boost whilst making long-term investments to strengthen future economic growth.

Accordingly, the Council of Australian Governments developed special arrangements for implementing the plan and all Premiers and First Ministers signed the National Partnership agreement on the Nation Building and Jobs Plan.

The plan will deliver $1.8 billion in additional funding to South Australia over four years, commencing in 2008-09, in the areas of education, housing and transport.

In addition, on 12 May this year, the Commonwealth budget provided a further stimulus package, with South Australia receiving a further $1.1 billion for a range of capital projects including:

$645.7 million for public transport infrastructure that includes $291.2 million for the Seaford rail extension (a long campaign by the member for Mawson, the member for Kaurna, other members, the member for Reynell, in particular, and the member for Bright), $293.5 million to bring forward by two years the upgrade and electrification of the Gawler line, which has been the long-held argument and lobbying put forward by the member for Light, both as mayor and as the local member. He has delivered to his community an outstanding result in this budget for which he should be very proud. Also, for the north-eastern suburbs, with a variety of members from the north-eastern suburbs, from the member for Newland to the member for Florey to the member for Hartley to the member for Torrens and, dare I say, the member for Davenport, there is a $61 million injection for an improved link between the O-Bahn and the Adelaide central business district. On that, in particular, I acknowledge the excellent work of the Minister for Infrastructure in consistently lobbying his federal counterpart and the Premier for consistently lobbying the Prime Minister to such an extent that I thought we might not get anything, so much were they pestering the federal government;

$228 million has also been provided by the Rudd Labor government enabling us to expand and double the size of the Adelaide Desalination Plant from 50 gigalitres to 100 gigalitres. And may I pay tribute again to the Premier for his outstanding lobbying of the Prime Minister consistently on this case. (I note my media adviser getting worried as I am ad-libbing components of my speech); and

$200 million to build a new Health and Medical Research Institute adjacent to the new Royal Adelaide Hospital on the north-west precinct, the railyard. We are already in the marketplace, we hope to have tenders let before the election and perhaps even a soil turning. Can I pay tribute to the Minister for Health for putting this on his agenda. I am glad that the commonwealth paid for it because, otherwise, I think we would have copped the bill. Again, can I praise the outstanding efforts of the Premier in lobbying the Prime Minister. I think the Prime Minister of Australia is very happy that our budget is done, he can get some peace from our Premier.

Mr Speaker, the Commonwealth's investment is supported by the state government's own infrastructure investment program creating a partnership for jobs and economic stimulus.

Mr Speaker, the Education and Children's Services operating budget for 2009-10 will exceed $2.3 billion.

Spending per government school student continues to grow in 2009-10.

Spending per student has risen from when we arrived on the Treasury benches and in office from $7,598 in 2001-02 to $12,627 in 2009-10—an increase of more than $5,000 per student.

In partnership with the Commonwealth, the 2009-10 Budget provides around $1.5 billion for new education initiatives over the next four years.

It includes around $1.2 billion over the next two years for government and non-government schools in South Australia for a program of capital works under the Building the Education Revolution initiative as part of the Nation Building—Economic Stimulus Plan.

This program will deliver new gyms, libraries and classrooms to over 520 government schools as well as maintenance and refurbishment programs worth up to $200,000 each in 589 government schools across the state as part of the Primary Schools for the 21st Century and National School Pride programs. The private sector, the small contractors, small builders, small business around the state are abuzz with activity from this program

The 2009-10 Budget also includes:

$107.7 million over four years for low socioeconomic status schools in the government sector;

$72.5 million over three years for the government school sector to improve the ratio of computers to students in Years 9 to 12 as part of the Commonwealth's Digital Education Revolution;

$65.1 million over four years for the government school sector to provide access to an early childhood education program for all children in the year before they start school by 2013 (it was a particular desire of the Minister for Children's Services to get that issue on the agenda, and the Minister for Education);

$51.1 million over four years for maths and science programs in government primary schools;

$4.3 million in 2009-10 to improve literacy and numeracy outcomes in government schools; and

$4.2 million over three years to improve teacher quality in government schools.

Mr Speaker, in March 2009, the government announced Pinnacle Education as the preferred bidder for the Education Works—New Schools PPP project.

This project involves the development of six new super schools for the communities of Playford North, Inner North and Inner West areas of Adelaide for more than 4,600 students.

Subject to final negotiations, contractual close is expected in mid-2009 and the first two schools are expected to open in 2010.

Mr Speaker, last year's budget announced the commencement of a major 10 year program to redevelop, electrify and extend the state's public transport infrastructure.

This budget builds on that commitment by announcing a further major expansion of rail infrastructure and services to Seaford, and the earlier implementation of a number of rail projects.

To support these arrangements the Commonwealth will provide $618.7 million over four years, in addition to $27 million in the current fiscal year 2008-09.

These projects include:

$354.2 million over four years to extend the Noarlunga rail line to Seaford—comprising $291.2 million for track and related infrastructure and $63 million for the purchase of new electric railcars;

$293.5 million for the upgrade and electrification of the Gawler rail line, enabling the completion date of this project to be brought forward by two years. The total investment in the Gawler line over the next four years is a massive $335.5 million;

the electrification of the Noarlunga line, with an additional $77.4 million to be spent over four years. The total investment in the Noarlunga line over the next four years is a $327 million capital outlay. It is huge. Thank you for your efforts, member for Mawson; and

$61 million over three years to improve the link between the O-Bahn busway and the central business district, significantly reducing travel times, and finally competing David Tonkin's project many decades later.

Further state support of $125.9 million over four years will support the infrastructure upgrades, new and existing public transport services, free travel for seniors (I was stopped by two seniors in David Jones the other day and thanked for their free travel; I took full credit), as well as measures to provide for more track inspections, more graffiti removal teams and more security officers on our trains.

Mr Speaker, the budget reaffirms the government's commitment to improving road safety, with the provision of an additional $23 million over four years for our rural road safety program.

This support will be used to address roadside hazards, improve signage and provide junction improvements.

Mr Speaker, next year, the Health budget will exceed $4 billion for the first time. That is an increase of some 93 per cent since Labor came to office.

The government remains committed to a health reform program including major investments in hospitals and primary healthcare.

Over the next four years works will be undertaken on the redevelopment of the Queen Elizabeth Hospital, Lyell McEwin, Whyalla and Berri hospitals, Flinders Medical Centre and Glenside Campus, and progressing the new Royal Adelaide Hospital and GP Plus centres at Marion, Elizabeth and Port Pirie.

The 2009-10 Budget continues to support health services by providing $546.1 million over four years in partnership with the Commonwealth for health initiatives, including:

$200 million to build a new Health and Medical Research Institute adjacent to the new Royal Adelaide site at the City West campus;

$114 million to further improve and increase health services across South Australia;

$61 million to improve the operations of emergency departments by increasing access to hospital care, establishing acute medical units and improving patient flow;

$53.9 million towards improving indigenous health by providing culturally responsive primary healthcare services and improved patient journeys through hospital;

$51 million for what I understand will be another 160 nurses and midwives into our hospital system;

$40 million towards increasing sub-acute services, including home rehabilitation and community pharmacy network;

$25.1 million for a dental health program; and

$15.1 million for the SA Ambulance Service to provide more out of hospital emergency medical care.

In addition, $6 million will be provided in 2010-11 to support the purchase of new aircraft by the Royal Flying Doctor Service to provide emergency and primary healthcare to rural and remote communities. The member for Giles has been a strong proponent of that and a strong supporter, as has the member for Frome, and has argued and lobbied heavily to me (particularly the member for Frome) to ensure that we indeed provide an improved service.

Mr Speaker, in December 2007, the government announced that a new 800 bed state-of-the-art hospital would be delivered in this state.

Project planning and documentation for the new Royal Adelaide Hospital is progressing and expressions of interest will be sought in mid 2009. The delivery of the project as a public-private partnership remains our preferred model of delivery. However, as I outlined to the house yesterday, due to the collapse and constraints of the capital markets, the cost of private capital, we are considering whether or not there will be a capital contribution from government or whether the famed DBOM (design, build, operate, maintain) will be considered. We will have a clearer position when we release the EOIs.

The new hospital is expected to be online and keys handed over in 2016.

Mr Speaker, the Rann Labor Government is delivering water security for South Australians in the face of ongoing drought conditions to ensure water supply to the more than 90 per cent of South Australians who rely on the River Murray.

The Budget provides:

$833 million in 2009-10 towards the $1.8 billion 100 gigalitre Adelaide Desalination Plant—with phase one delivering first water by December 2010; and

$164.6 million in 2009-10 and $414 million over four years to upgrade and expand wastewater treatment plants and water recycling infrastructure.

The 2009-10 Budget also continues, for a further 12 months, the exceptional circumstances interest rate subsidies for drought affected areas. I acknowledge the former minister for agriculture and the current Minister for the River Murray as members of cabinet from rural districts, particularly the former minister who, again, drove a hard bargain on behalf of rural South Australia to ensure that this state stumped up and did its share in assisting and relieving the burden for farmers. The Commonwealth will provide up to $93.6 million in total and South Australia will contribute a further $10.4 million.

Over the next four years the government will also invest more than $52 million in projects to increase storm water reuse. The member for Cheltenham (Minister for the Environment) and the Minister for Water Security (member for Chaffey) were again very strong proponents within cabinet of the greater use of stormwater, and their pressure on government to adopt these policies has been adopted in this budget framework.

The 2009-10 Budget further supports economic development through significant investment in the state's infrastructure and strengthening of our workforce capacity.

The budget provides:

$155 million over four years to address the skills shortage in our state by providing an extraordinary 56,000 training places;

$37.3 million over four years to support the development of strategic industrial land precincts that provide access to national road and rail links and international port facilities;

$14.6 million in 2009-10 to improve infrastructure in TAFE facilities as part of the commonwealth government's nation building package;

$12 million over four years to expand the domestic tourism marketing campaigns in South Australia to increase our share of the interstate tourism market. Again, my compliments to the Minister for Tourism and the chairperson of the Tourism Commission, Bob Foord, for their strong lobbying for further effort in the marketing of our state nationally and internationally;

$10 million over five years commencing in 2009-10 to support the establishment of a Materials and Minerals Science Learning and Research Hub at Mawson Lakes and a Photonics and Advanced Sensing Institute at The University of Adelaide. I thank the current and the previous ministers for science, who can share the credit for that effort;

$3.2 million over three years from 2010-11 to extend the role of the Olympic Dam Taskforce as part of the state's commitment to the expansion of the Olympic Dam project; and

$800,000 over four years to attract more international students to South Australian universities.

Mr Speaker, the Techport Australia Common User Facility will be completed in 2009-10.

This facility is a key component of shipbuilding infrastructure to support the construction and commissioning of the Royal Australian Navy's Air Warfare Destroyers.

Mr Speaker, the government this week also announced a new initiative that is dear to my heart, and one that I personally have been heavily involved in—an initiative to promote 'green jobs'. I have been involved because I had to agree to the financing of it.

The Premier announced the provision of $20 million over two years for the Renewable Energy Fund to support research, development and commercialisation of renewable energy technologies in South Australia.

Mr Speaker, in partnership with the Commonwealth, including through the Nation Building—Economic Stimulus Plan, around $692 million will be provided over the next four years for the Department for Families and Communities to construct and refurbish social housing to assist the homeless and provide additional resources for the disability sector. The Minister for Families and Communities was again a strong supporter and proponent of this funding.

As a result, under Nation Building, South Australia will build 1,500 new social and affordable homes and refurbish around 400 more, with existing state funded programs providing more housing support for people on low incomes, people at risk of homelessness and people with a disability. Upwards of some 2,200 dwellings will be made available through this program during the course of the next year—again, an extraordinary stimulus measure, as well as a vital social justice measure in itself.

Mr Speaker, the 2009-10 Budget provides the essential resources to maintain the government's focus on and commitment to law and order.

The Rann Government believes in supporting its police service as it continues to enforce the range of law and order policies we have introduced over the past seven years.

Most recently our police have begun enforcing the suite of new laws for it to take up the fight against the criminal bikie gangs with government support also provided to the Crime Gang Taskforce.

In 2009-10 the operational budget for South Australia Police will be around $661 million.

That's an increase of 5.1 per cent compared to the 2008-09 Budget and 79 per cent more funding for police in this state since the last Liberal budget in 2001-02.

In this year's budget alone there is also support for the $59 million new Police Academy Redevelopment project, with $5.4 million to be spent in 2009-10.

When completed it will provide the most modern, technically advanced, training facility, not just in South Australia but anywhere in Australia (and it is up there in the world), for South Australia's police recruits.

The Budget will also provide $3.3 million in 2010-11 for a new police station at Yalata. I acknowledge the member for Stuart's interest in this issue. I apologise; I acknowledge the member for Flinders interest in this issue.

Under this government, South Australia Police has never been better funded or staffed.

Mr Speaker, more than $100 million will be invested over four years to upgrade to a new digital Government Radio Network to provide our emergency services with the very latest technology. There will be a public tender and no side deals

The South Australian Government Radio Network is one of the largest public safety radio communications networks in the world, with more than 30,000 registered agency and volunteer users covering more than 220,000 square kilometres of the state, and more than 96 per cent of the state's population.

It is part of the critical infrastructure that is essential to the state's police, ambulance and emergency services when they are required to respond to emergencies and calls for assistance.

Mr Speaker, other measures included in the 2009-10 Budget to support the government's commitment to law and order (I acknowledge the Minister for Police, the Attorney-General and the Minister for Correctional Services for being strong advocates for further improvements in these areas), include:

$2.4 million over four years for expanding DNA testing. The Attorney-General and the Premier can take great credit for keeping so many more bad people locked away because of DNA testing;

$2.4 million over four years for video conferencing facilities in our prisons;

$1.1 million over four years to establish a community corrections centre in Gawler. This is again another policy matter strongly lobbied and advocated by the member for Light, and again his strong representation on behalf of his community has seen the member for Light deliver a further improved service to his community; and

$471,000 in 2009-10 to facilitate an earlier opening of the Sturt Street Courts so that we can prosecute and proceed more quickly.

Mr Speaker, this has been a difficult budget to frame in challenging economic times.

This budget strikes a balance between delivering record investment in key infrastructure, supporting South Australian jobs, making responsible decisions to bring the budget back into surplus and preparing our economy for the opportunities that will emerge as the global financial crisis eases.

In conclusion, I would like to thank the outstanding work of my Ministerial colleagues. I mean that sincerely, as this has not been an easy budget for line ministers. This has not been an easy budget for our cabinet, but I am very proud to have worked with a group of my colleagues who have put state and financial responsibility ahead of individual wants in their portfolios. In particular, I thank the chief executive officers of our government agencies, the Under Treasurer, Jim Wright, and Chris Eccles, the new head of the Department of the Premier and Cabinet. I would also like to thank the staff of ministers and the staff of the chief executive officers and, in particular my staff.

I thank my Chief of Staff, Stephen Mullighan, who has done an outstanding job. Remember that name, members opposite. He will be here one day to haunt many of you as a future treasurer of this state. Stephen has done an outstanding job. Thank you, Stephen. Sorry, Stephen; I have probably put the mockers on you! I also thank my principal media adviser, Rick Morris, who has done an outstanding job. I do not want to name individuals, but I particularly those two. I also thank all my staff and the Premier's staff.

I commend this budget to the House.

Explanation of Clauses

Clause 1: Short title

This clause is formal.

Clause 2: Commencement

This clause provides for the Bill to operate retrospectively to 1 July 2009. Until the Bill is passed, expenditure is financed from appropriation authority provided by the Supply Act.

Clause 3: Interpretation

This clause provides relevant definitions.

Clause 4: Issue and application of money

This clause provides for the issue and application of the sums shown in Schedule 1 to the Bill. Subsection (2) makes it clear that the appropriation authority provided by the Supply Act is superseded by this Bill.

Clause 5: Application of money if functions or duties of agency are transferred

This clause is designed to ensure that where Parliament has appropriated funds to an agency to enable it to carry out particular functions or duties and those functions or duties become the responsibility of another agency, the funds may be used by the responsible agency in accordance with Parliament's original intentions without further appropriation.

Clause 6: Expenditure from Hospitals Fund

This clause provides authority for the Treasurer to issue and apply money from the Hospitals Fund for the provision of facilities in public hospitals.

Clause 7: Additional appropriation under other Acts

This clause makes it clear that appropriation authority provided by this Bill is additional to authority provided in other Acts of Parliament, except, of course, in the Supply Act.

Clause 8: Overdraft limit

This sets a limit of $50 million on the amount which the government may borrow by way of overdraft.

Debate adjourned on motion of Mr Hamilton-Smith.

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